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3-MO 3.83% -7bp 6-MO 3.97% -10bp 1-YR 4.04% -5bp 2-YR 4.22% -4bp 3-YR 4.29% -2bp 5-YR 4.37% +2bp 7-YR 4.51% +4bp 10-YR 4.67% +6bp 20-YR 5.21% +10bp 30-YR 5.20% +11bp 3-MO 3.83% -7bp 6-MO 3.97% -10bp 1-YR 4.04% -5bp 2-YR 4.22% -4bp 3-YR 4.29% -2bp 5-YR 4.37% +2bp 7-YR 4.51% +4bp 10-YR 4.67% +6bp 20-YR 5.21% +10bp 30-YR 5.20% +11bp 3-MO 3.83% -7bp 6-MO 3.97% -10bp 1-YR 4.04% -5bp 2-YR 4.22% -4bp 3-YR 4.29% -2bp 5-YR 4.37% +2bp 7-YR 4.51% +4bp 10-YR 4.67% +6bp 20-YR 5.21% +10bp 30-YR 5.20% +11bp 3-MO 3.83% -7bp 6-MO 3.97% -10bp 1-YR 4.04% -5bp 2-YR 4.22% -4bp 3-YR 4.29% -2bp 5-YR 4.37% +2bp 7-YR 4.51% +4bp 10-YR 4.67% +6bp 20-YR 5.21% +10bp 30-YR 5.20% +11bp 3-MO 3.83% -7bp 6-MO 3.97% -10bp 1-YR 4.04% -5bp 2-YR 4.22% -4bp 3-YR 4.29% -2bp 5-YR 4.37% +2bp 7-YR 4.51% +4bp 10-YR 4.67% +6bp 20-YR 5.21% +10bp 30-YR 5.20% +11bp 3-MO 3.83% -7bp 6-MO 3.97% -10bp 1-YR 4.04% -5bp 2-YR 4.22% -4bp 3-YR 4.29% -2bp 5-YR 4.37% +2bp 7-YR 4.51% +4bp 10-YR 4.67% +6bp 20-YR 5.21% +10bp 30-YR 5.20% +11bp
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Guidance

Meta raised the floor of its expense outlook to absorb $2.4bn of legal charges, and raised its tax rate outlook in the same paragraph

Money & World
The Editorial Team ·
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The expense range Meta gave three months ago no longer applies.

In the outlook section of its second quarter release on Wednesday, the company said it now expects total expenses for 2026 of $165bn to $169bn, and that it raised the lower end of that range to incorporate $2.40bn of charges related to legal proceedings recognised in the second quarter. Total costs and expenses for the quarter came to $42,026m, up 55 percent from $27,075m. The other item Meta names inside that increase is $1.18bn of severance connected to the headcount reduction it made in May 2026.

The release does not identify the legal proceedings. It gives a figure and a category, and stops.

Separately, in the closing paragraph of the same outlook section, Meta said it continues to monitor active legal and regulatory matters that could significantly affect its business and financial results, that it continues to see scrutiny on youth-related issues in several markets, and that a number of youth-related trials are scheduled this year in the United States, which it says "may ultimately result in a material loss". The document does not connect that language to the $2.40bn already booked. Neither does this brief.

The other three ranges

Meta expects third quarter revenue of $61bn to $64bn, on an assumption that currency takes about one percentage point off the year on year growth rate. Capital expenditure for 2026, including principal payments on finance leases, is now put at $130bn to $145bn, narrowed from $125bn to $145bn. The floor rose and the ceiling held. The tax rate for the remaining quarters of 2026 is now expected between 15 percent and 17 percent, against a prior outlook of 13 percent to 16 percent, and the effective rate in the second quarter was already 16 percent, against 11 percent a year earlier, on a provision of $2,908m against $2,197m.

The section ends where it began three months ago on one point. Meta repeated that it continues to expect operating income for 2026 above the 2025 figure. Income from operations in the second quarter was $18,775m, against $20,441m a year earlier, and for the six months it was $41,647m against $37,997m.

The document: Meta Platforms, Inc., 'Meta Reports Second Quarter 2026 Results', Exhibit 99.1 to a Form 8-K filed 29 July 2026, accession 0001628280-26-050596, accepted by EDGAR at 16:03:23 Eastern, Item 2.02. The CFO Outlook Commentary section states: third quarter 2026 total revenue of $61-64 billion with foreign currency an approximately 1 percent headwind; full year 2026 total expenses of $165-169 billion, with the lower end raised to incorporate the $2.4 billion of legal charges recognised in the second quarter; 2026 capital expenditures including principal payments on finance leases of $130-145 billion, narrowed from $125-145 billion; a tax rate of 15-17 percent for the remaining quarters, increased from 13-16 percent; and continued expectation of 2026 operating income above 2025 operating income. Second quarter provision for income taxes was $2,908m at a 16 percent effective rate, against $2,197m at 11 percent. Total costs and expenses for the quarter were $42,026m against $27,075m, stated as including $2.40bn of legal charges and $1.18bn of severance for the May 2026 headcount reduction. Exhibit read in full 29 July 2026..

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